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How can brandon sell debt paying only 115 in a 1225

1.On January 1, 2013, Brandon Electronics issued $85 million of 11.5% bonds, dated January 1. The market yield for bonds of maturity issued by similar firms in terms of riskiness is 12.25%. How can Brandon sell debt paying only 11.5% in a 12.25% market?

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Accounting Basics: How can brandon sell debt paying only 115 in a 1225

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Accounting Basics: How can brandon sell debt paying only 115 in a 1225

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